learning and decision making ch8

Question 1

what is decision making

Answer 1

how we as humans make choices it’s a fundemental problem solving process

Question 2

key aspects of decision making

Answer 2

1. involves making a choice
2. it’s a process
3. involves a commitment to resources

Question 3

methods of decision making

Answer 3

1. programmed
2. non programmed

Question 4

what is programmed decision

Answer 4

1. automatic
2. done without thinking
3. familiar situations
4. explicit: you can explain it

Question 5

what is non programmed decision

Answer 5

1. facing something new
2. unique situation (no rules apply)
3. decision is based on circumstances

Question 6

decision making problems

Answer 6

1. limited information
2. faulty perception
3. selective perception
4. faulty attributions
5. escalation of commitment

Question 7

what is faulty perception

Answer 7

misinterpretation of information

Question 8

what is selective perception

Answer 8

see what we want to see

Question 9

types of biases

Answer 9

1. anchoring
2. framing
3. representativeness
4. contrast
5. recency
6. ratio bias effect

Question 10

what is anchoring

Answer 10

relying heaving on the first piece of information

Question 11

what is framing

Answer 11

the way information is presented affects decision

Question 12

what is representativeness

Answer 12

people judge the likelyhood of an event by comparing it to something similar even if it’s not logically justified

Question 13

what is contrast

Answer 13

judging something in comparison to nearby option rather than objectively

Question 14

what is recency

Answer 14

giving too much weight to recent information

Question 15

what is ratio bias effect

Answer 15

thinking a large number means a better chance even if the percentage is the same

Question 16

what is faulty attributions

Answer 16

wrongly judging the reason behind someone’s behavior

Question 17

factors to consider in faulty attributions

Answer 17

1. consensus
2. distinctiveness
3. consistency

Question 18

what is consensus

Answer 18

did other people experience the same thing in the same situation

Question 19

what is distinctiveness

Answer 19

if the person acts the same way in other situations

Question 20

what is consistency

Answer 20

does the person always behave this way in similar situations

Question 21

what is escalation of commitment

Answer 21

when the company keeps investing into something that is clearly not working

Question 22

why might a company have escalation of commitment

Answer 22

1. to avoid looking incompetent
2. to justify initial investment

Question 23

how to improve decision making skills

Answer 23

1. evidence based management
2. crowdsourcing
3. analytics and big data

Question 24

what is evidence based management

Answer 24

making decisions based on evidence

Question 25

what is crowdsourcing

Answer 25

when a company asks a large group of people online for ideas, or solutions instead of relying on few decision makers

Question 26

what is analytics and big data

Answer 26

examining large datasets to find patterns and insights using mathematical methods